The below updates are effective for all loans locked in the Jumbo Series D product on or after June 22, 2021.
- Primary Residence Purchase and Rate & Term Refinance
- 1-unit up to 75% LTV/CLTV with a maximum $2,000,000 loan amount
- 2-unit up to 65% LTV/CLTV with a maximum $2,000,000 loan amount
- Second Home Purchase and Rate & Term Refinance
- 1-unit up to 70% LTV/CLTV with a maximum $2,000,000 loan amount
- Investment Property Purchase and Rate & Term Refinance
- 1-to 2-units up to 65% LTV/CLTV with a maximum $1,500,000 loan amount
- First Time Homebuyer
- 1-unit up to 80% LTV/CLTV with a maximum $1,500,000 loan amount
Additional Updates and Clarifications
- Properties with title held as Tenants in Common with unequal ownership is ineligible.
- Requirement for a CPM Expedited Review for a 2-to 4-unit condominium projects has been removed. 2-to 4-unit condominium projects may be underwritten per Fannie Mae guidelines.
- Clarification was added that Deferred Compensation Retirement Plans are not an eligible source of income.
- Self-reported trade lines, such as utilities, are not acceptable and must be removed from the credit report.
- Borrowers living rent-free in the months directly preceding or during the loan application process are eligible provided the following are met:
- The rent-free period does not exceed 12 consecutive months;
- An acceptable 12- or 24-months rental history is obtained (based on specific program requirements) for the period immediately prior to the rent-free period; and
- Letter of explanation from the borrower.
- When a borrower owns a property with non-borrowing individuals, the monthly housing obligation (PITIA) may not be reduced based on the percentage of ownership when ownership.
- The borrower may not be in forbearance for any loan for which they are obligated on and must have exited forbearance or completed any loss mitigation plans prior to the Note date of the subject transaction.